Vodacom Jump Into The Micro loans Space
Vodacom Begin To Offer Small Loans
Vodacom are now giving their clients access to small loans between R50 and R500 through VodaLend.
Vodacom has had reasonable success with their VodaPay system. They have and continue to offer small incentives for users to make purchases through the app and to use app partners for mini specials. Now they are rolling out microloans to everyday consumers* at the push of a button through VodaLend.
How Will They Avoid Reckless Lending?
By using the consumers recent payment history and spending patterns they feel their algorithm will help them offer only the appropriate amount to consumers who make use of the system.
Also, they should have decent repayment prioritization by clients who will want to avoid interruptions to their connectivity.
Cheaper Than The Local Mashonisa
The new VodaLend Cash Advance product is in many ways aimed at what are described as “under banked” clients who are not currently making use of formal banking channels and finance options.
VodaLend are very proud that their loan offerings will help steer people away from more dangerous and unscrupulous loan sharks who charge outrageous and illegal interest rates (and often take consumers’ bank cards or SASSA cards).
Lenders will have a choice of 4 repayment terms:
7 days, 14 days, 21 days or 28 days.
VodaLend & VodaPay
Once the small loan in granted the money is made available to the user in the VodaPay app in their digital wallet. This can then be used to shop, send money to friends and family or pay utilities (like buying prepaid electricity through the app).
It is estimated that around 2.8 million people have downloaded the Vodapay app.
*Vodacom has made business (Fund My Business) loans available in the past.